Saudi Arabia Construction Cost Index Climbs 2.7% in June Amid Rising Material Prices
RIYADH — Saudi Arabia’s Construction Cost Index climbed 2.7 percent year on year in June, driven by higher equipment rental and labor costs in both the residential and non-residential sectors, according to the General Authority for Statistics.
Residential sector costs rose 2.6 percent annually, with equipment rental costs up 4.5 percent and labor costs climbing 2.5 percent. Energy prices increased 3 percent, while basic material costs rose 1.8 percent, led by timber and joinery prices.
Non-residential sector construction costs increased 3.1 percent, with equipment rental costs rising 6.7 percent and labor and energy costs each climbing 3 percent. Basic materials rose 1.9 percent.
On a monthly basis, the overall index edged up 0.1 percent in June compared with May. The CCI tracks price changes across 51 items, with data collected monthly from contractors, engineering firms, and suppliers across all 13 regions.
The construction market is projected to reach $140.4 billion by 2034, growing at a compound annual rate of 3.6 percent, according to an IMARC Group forecast. The sustained boom aligns with broader Gulf Cooperation Council trends as countries across the region accelerate economic diversification.
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